UNIPRES CORPORATION Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)

FY2010(endedMar. 2011)

FY2009

Rate of change (%)

Factors

Sales

219,032

175,750

24.6

Sales increased year-on-year because its customers produced more volume as a result of their having created new model vehicles; and because the Company’s new production plants launched commercial operations.

Operating income

21,764

12,191

78.5

-

Ordinary income

20,313

11,801

72.1

-

Net income

11,750

6,537

79.7

-

Business Plan

The Company will strengthen its activities to expand sales of torque converters. The Company, which has been procuring dampers used in the torque converters from outside suppliers, is going to develop these dampers on its own, planning to start in-house production in fiscal year 2011. Leveraging its expertise in the area of car body parts stamping, it aims to increase its competitive edge in terms of both product performance and cost efficiency. Raising the ratio of self-developed components is expected to contribute to boosting the sales volume of its torque converters. Unipres intends to increase their sales for fiscal year 2012 by 43 percent from the 2009 level to 7 billion yen, a quarter of which (1.8 billion yen) is expected to come from those equipped with its proprietary dampers. A torque converter damper functions as a shock absorber when the engine and the transmission are directly connected. (From an article in the Nikkan Jidosha Shimbun on May 25, 2010)

Subsidiary

The Company will acquire as of June 17 the remaining stake in its consolidated subsidiary Unipres Kyushu Corporation located in Fukuoka Prefecture from Mitsuike Corporation to turn it into its 100 percent-owned subsidiary for the purpose of enhancing management efficiency. Unipres Kyushu, which was established in 1976, is owned 20 percent by Mitsuike and supplies stamped body parts to Nissan Kyushu Plant. (From an article in the Nikkan Jidosha Shimbun on June 9, 2010)

R&D

R&D Expenses

R&D Activities-The Company has 204 research and development staff members as of March 31, 2011.-The Company has 77 industrial property rights as of March 31, 2011.

The Company will establish Unipres R&D Co., Ltd. on April 1. The new company will integrate the Group’s technology development functions to engineer stamping technologies for body structural parts, precision parts for transmissions and plastic components. Based on the establishment, Unipres’ Engineering Development Department, Engineering Department, Production Engineering Department, Transmission Engineering Development Department, and Transmission Engineering Department will be consolidated, while a new Engineering Division will be formed as a contact point between Unipres headquarters and the new company. Unipres R&D will be located in Yokohama City, Kanagawa Prefecture. Approximately 350 engineers at Unipres will be working at the new company. (From an article in the Nikkan Jidosha Shimbun on March 17, 2011)

<Product Development>-Optimizing the strength and rigidity of products-Developing products that are more compact and lighter in weight-Designing products in which stamping technology can be applied-Shortening development periods

The Company has realized highly improved productivity through the improvement of its hot press technology. The new method achieves rapid cooling by pouring out cooling water from the surface of the die and passing it between the die surface and the car body panel. Making use of a basic technology developed by Nippon Steel Corporation, it enables special processing on the die surface in line with the shape of the part. This new method has approximately tripled hot press productivity. Unipres plans to gradually adopt it starting with mass-produced parts for Nissan Motor. (From a press release on November 24, 2010)

Investment Activities

Capital Investment

(in millions of JPY)

FY2010

FY2009

FY2008

Overall

14,400

13,700

11,800

Automotive Parts

-

13,600

11,600

-JapanThe Company invested 7.9 billion yen mainly to renew auto-parts production facilities and equipment to respond to model-changes made by its customers.

-North AmericaThe Company invested 1.4 billion yen mainly to renew auto-parts production facilities and equipment to respond to model-changes made by its customers.

-EuropeThe Company invested 1.0 billion yen mainly to renew auto-parts production facilities and equipment to respond to model-changes made by its customers.

-AsiaThe Company invested 3.9 billion yen mainly to renew auto-parts production facilities and equipment to respond to model-changes made by its customers; and to establish a new company in China.